Eurasian Development Bank Plans to Invest $3.5 Billion in Kazakhstan

The Eurasian Development Bank (EDB) signalled its intent to inject direct investments of over $3.5 billion in Kazakhstan during 2024.

In a recent meeting with Kazakh President Kassym-Jomart Tokayev, EDB Chairman Nikolay Podguzov discussed ambitious plans to finance potential projects worth over $3.5 billion in Kazakhstan this year alone.

The investment strategy is geared towards bolstering critical sectors such as transport infrastructure, thermal power, renewable energy sources, industry, agriculture, and water resources. Podguzov underscored the bank's commitment to support Kazakhstan in its efforts in the judicious utilization of water resources, earmarking substantial funds for various initiatives.

According to a statement issued by the president’s press service on Monday, the EDB is poised to allocate grant funds of up to $10 million for the establishment of regional centers of expertise on water-saving and energy-efficient technologies. Additionally, an allocation of up to $400 million is designated for projects aimed at deploying cutting-edge irrigation equipment and implementing digital water accounting systems.

Podguzov emphasized the EDB's commitment to Kazakhstan's economic landscape, highlighting that investments have consistently exceeded $1 billion for the past two years. The bank's annual investments soared to $4.2 billion in the years 2022-2023, a figure surpassing the initial projections outlined in their strategic plan.

The statement revealed that the proportion of Kazakh projects within the EDB's portfolio has surged, reaching 59 percent by the conclusion of 2023.

President Tokayev expressed his appreciation for the forthcoming annual meeting and business forum to be hosted by the EDB in Almaty later this summer. He emphasized the pivotal role of infrastructure projects supported by the bank in Kazakhstan's development trajectory.

Central Asia’s largest country has been one of the top destinations for some of the most active multilateral development banks, including the European Bank for Reconstruction and Development (EBRD) and the Eurasian Development Bank, which topped the list of the financial institutions from which foreign investment flowed.

The government's measures to enhance investment attractiveness, including policy revisions and incentives for businesses, have further bolstered Kazakhstan's appeal to foreign investors.

As part of a government-led initiative to ease local investment policy, Kazakhstan in January 2023 adopted a law that would facilitate the introduction of a new mechanism – an improved model contract (IMC) – to boost competition and create conditions for drawing in additional investment in developing Kazakhstan's challenging projects.